Focus on areas where
we can make a difference
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Sustainability Review (continued)
Our sustainability strategy focuses on the areas where we can make
the biggest difference. In this section we summarise the why and how
of our strategy.
'Every drop':
protecting water resources
'Drop the C':
reducing CO2 emissions
Sourcing
sustainably
2 6 8 12
Report of the
Report of the
Financial
Sustainability
Other
Introduction
Executive Board
Supervisory Board
Statements
Review
Information
Heineken N.V. Annual Report 2017
On track
0 More to do f Off track
Supporting SDG
Water is the ultimate shared resource and
we must all safeguard it forthe future.
Beer is 95% water, so it is a critical resource
for our business. We use water throughout
our supply chain -from growing crops to
ourfinished products. We are working hard
to reduce our water use in our breweries,
especially in water-stressed areas. We are
investing in new water treatment plants
and technology to reuse ourtreated water
and generate renewable energy from the
treatment process-offering good potential
forthe future.
We have committed to balance the
water we consume in water-stressed areas.
The water stewardship projects that enable
us to do it are increasingly varied-from
restoring wetlands and testing whether
barley planted among olive trees in Spain
can help conserve water, to researching
innovative new irrigation techniques
with farmers in Mexico. But this is not an
easy process and takes time. One of the
challenges is mobilising stakeholders, as
everyone has a role to play.
There is more to do and our next step is
to look beyond 2020, defining our water
strategy and related targets for 2030:
'Every Drop'.
2020 Commitment
Progress 2017
Reduce water consumption
in our breweries 30%1
Water balancing in water-
stressed areas
Al l wastewater treated
For more information about our progress in 2017:
See pages 136-137
Supporting SDG
Climate change is one of the greatest threats
facing society, but still emissions continue
to rise. From production and transport
to refrigeration and waste, we focus on
reducing emissions across our entire value
chain, and we are on track to reach our 2020
targets. In our breweries, we are improving
energy efficiency - investing in efficient
processes and using more renewable energy
to brew our beer, like at Ponta Grossa in Brazil
where a new biomass boiler covers 100%
of the brewery's thermal energy needs.
For production we have set new targets for
2030: growing our share of renewable energy
from 14% in 2017to 70% by 2030. This would
lead to an 80% reduction in our CO2 emissions
per hl for our production (breweries).
We are working hard to reduce emissions
from distribution but we still have more to
do - reducing the distance we drive, using more
sustainable fuels and vehicles, and switching
from road to rail and water. 'Green' fridges
have become the norm for cooling our
beverages, but our biggest impact comes
from our packaging. It is an area where we
have more to do and we are bringing it into
the scope of our target setting. In the next
two years, we will set 2030 science based
targets for reducing emissions in packaging,
distribution and cooling. These three areas
are difficult to tackle and require collaborative
action across the whole value chain.
2020 Commitment
Progress 2017
Lower emissions in production
by 40%2
Lower emissions in distribution
by 20%3
Lower emissions from our
fridges by 50%4
2 Baseline 2008.
3 Baseline 2010/2011.
4 Baseline 2010.
For more information about our progress in 2017:
See pages 138-140
Supporting SDG
Responsible sourcing has never been more
important. As pressure on resources grows,
we are focused on securing a long-term,
sustainable supply of raw materials,
improving farmer livelihoods and raising
supplier standards. Our sustainable sourcing
approach is based on the principles of the
Sustainable Agriculture Initiative Platform
(SAI), a multinational partnership working
towards a more sustainable food chain.
In Africa, we support farmer livelihoods,
increase processing capacity and promote
better access to markets, seeds and finance.
At the same time, HEINEKEN benefits by
reducing import-related duties and securing
a sustainable supply of raw materials.
But challenging economic conditions
impacted our ability to source locally3
in 2017.
Because many of our impacts happen
through our supply chain, we depend on our
suppliers to help us improve supply chain
standards. Ensuring compliance with the
HEINEKEN Supplier Code is just the starting
point for many suppliers as we raise our
expectations across topics such as human
and labour rights.
2020 Commitment
Progress 2017
50% of raw materials
sustainably sourced
60% local sourcing in Africa
Compliance with Supplier
Code Procedure
5 More than 80% of local raw materials are sourced domestically,
with the remainder coming from other markets within the region.
For more information about our progress in 2017:
See pages 140-141
